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Jim Cramer revealed his newest biotech picks at the start of Wednesday's "Mad Money" Main Event, which was taped in front of a studio audience.

Last year he offered

Genzyme

(GENZ)

,

Gilead

(GILD) - Get Report

,

Amgen

(AMGN) - Get Report

,

Celgene

(CELG) - Get Report

and

Genentech

(DNA)

, and frankly, he said, "I was dead right about all of those."

But now it's time to take some money off the table and put it into the brand-new biotech pantheon:

ZymoGenetics

(ZGEN)

and

Myogen

(MYOG)

.

ZymoGenetics is all about blood, said Cramer. It makes a drug that helps stop bleeding after a surgical incision is made. He anticipates there will be a lot of press coverage for this blood-clotting treatment, which he believes will be approved by 2007.

Plus, its main competition, Cramer said, is encumbered with a black box warning, a notice from the Food and Drug Administration concerning potential side effects. Cramer predicts there will be a rapid switchover to ZymoGenetics' product based on safety concerns alone.

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Even though Myogen's stock jumped by 30% in 2005, Cramer said, he still wants to anoint Myogen because it's going higher.

The stock is at $33, and he said he thinks it will hit $40 or even $50 if there's a takeover, because it has two drugs that have shown positive results in late-stage trials for hypertension.

Alkermes

(ALKS) - Get Report

,

Neurocrine Biosciences

(NBIX) - Get Report

and

Progenics

(PGNX) - Get Report

were all candidates, but Cramer said that ZymoGenetics and Myogen are the anointed ones.

Investor-Friendly TV

Cramer welcomed

CBS

(CBS) - Get Report

CEO Les Moonves to the show, introducing him to the studio audience as the guy who took CBS "from worst to first."

Moonves explained that in order to make CBS America's most-watched network, he had to understand how to deal with talent and had to go with his gut.

When he first heard the premise for hit reality series

Survivor

, he thought the idea stank but that producer Mark Burnett was a winner.

Cramer said CBS stock was cheap, selling at 16-17 times earnings, but wanted Moonves to tell viewers why they should buy the

newly spun off stock.

With two networks, 40 television stations and 179 radio stations, Moonves reminded the audience that content is king and on its own is delivering a ton of revenue. He said that newly signed deals with

Google

(GOOG) - Get Report

,

Comcast

(CMCSA) - Get Report

and

Verizon

(VZ) - Get Report

mean that viewers will pay to have content delivered and that CBS will make money via subscriptions, ads and video-on-demand.

He told Cramer that it wasn't necessary for the company to merge with a big cable network, and that it's happy to be the first network in 20 years to stand alone.

People don't fully appreciate that CBS will now get paid by cable companies to have the CBS signal, Moonves said.

As for the Google deal, Google will take the network's top four shows and put them online for just $1.99 a viewing, he said, and consumers will some day be able to perform a search to even find specific parts of shows.

To view Cramer's interview with Moonves, click here.

Mad Money in Mozambique

Cramer also took his audience stock "pimping all over the world," saying that the third world is as hot as he's ever seen it, but difficult to invest in.

However, Cramer said, investors are getting a break in Mozambique, which has a ton of natural gas and wants to build an electric grid.

It's not turning to the U.S., but has agreements with Brazil's

Petroleo Brasileiro

(PBR) - Get Report

and

Rio Doce

(RIO) - Get Report

, which now have a lock on gas fields and electric power in Mozambique.

To make the "mad Mozambique money," Cramer said to go with Rio Doce, which is trading at roughly $46.

He thinks it's a buy for the long term because its mining business is booming all over the world and its businesses include mining, transportation and exporting of iron ore, gold and manganese.

Doctor Cramer in the House

Finally, Cramer donned the white coat to help diagnose and treat investors who are showing signs of unhealthy investments.

Jill-Marie said that she bought

Ameritrade

(AMTD) - Get Report

as a trade but that she already owned

E*Trade Financial

(ET) - Get Report

and

Charles Schwab

(SCHW) - Get Report

for the long term.

She's 25% invested in the brokers, but she wants to load up on Ameritrade and make that sector about 40%.

Doctor Cramer had the following medicine: diversification. And he suggested she do a little selling.

Russell said that he bought

Cendant

(CD)

and decided to hold on to it despite its bad quarter and the fact that Cramer himself was bearish on the stock.

Cendant is in an unbelievably difficult position, Cramer said, and recommended that this patient free himself of the stock.

Even though the housing market is slowing, Teresa said she still owned home-improvement retailers

Home Depot

(HD) - Get Report

and

Lowe's

(LOW) - Get Report

. She wanted to know if she'd be nuts not to trim her position.

Cramer said that he'd ring the register on Home Depot, and run with Lowe's.

The show's final patient, Leonard, said that he was overly diversified and so risk averse that he wasn't making any money.

The prescription: Leonard should pare down to no more than five positions, one of which was allowed to be speculative, with no more than 20% of his money in any one place.

Lightning Round

Cramer was bullish on

National Semiconductor

(NSM)

,

Broadcom

(BRCM)

,

Qualcomm

(QCOM) - Get Report

,

Marvell Technology

(MRVL) - Get Report

,

Motorola

(MOT)

,

Monster Worldwide

(MNST) - Get Report

,

Capital One Financial

(COF) - Get Report

,

Wachovia

(WB) - Get Report

,

Southern Co.

(SO) - Get Report

,

Automatic Data Processing

(ADP) - Get Report

and

Salesforce.com

(CRM) - Get Report

.

Cramer was bearish on

Zimmer Holdings

(ZMH)

,

Cypress Semiconductor

(CY) - Get Report

,

FedEx

(FDX) - Get Report

J2 Global Communications

(JCOM) - Get Report

,

Oracle

(ORCL) - Get Report

,

Cisco Systems

(CSCO) - Get Report

,

Arena Resources

(ARD) - Get Report

,

GameStop

(GME) - Get Report

and

Intuit

(INTU) - Get Report

.

For more of Cramer's insights during the Lightning Round, click here

.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

At the time of publication, Cramer was long Ameritrade, GameStop, Motorola and Qualcomm.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on Mad Money are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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